Loy Yang lifts AGL profit

Energy utility AGL has boosted its net profit to $364.7 million for the December half, well up from $117 million earned a year earlier, which largely reflects the inclusion of the Loy Yang A power station acquired last year.

Revenue rose to $4.97 billion from $3.6 billion, with earnings a share reaching 66.5 cents up from 24.5 cents.

Underlying earnings rose 20 per cent to $279.4 million, it said, after booking a loss on the change in value of financial instruments.

Shares were up 2 per cent to $15.49 in early trade.

The group enjoyed a strong performance of its power generation business thanks to the full inclusion of Loy Yang A which was partly offset by weakness on the retail side, amid stiff competition for customers and eroding margins.

Even so, AGL said it lifted customer numbers by more than 60,000 in the key NSW market. The interim dividend has been raised to 30 cents a share from 29 cents a share.